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Why would USD dominance diminish? Something like 90% of IP is based out of the US. Chinese education system is a complete joke (as evidence by brain drain).
by lvl102 4y ago
Why would USD dominance diminish? Something like 90% of IP is based out of the US. Chinese education system is a complete joke (as evidence by brain drain).
- fuoqi 4y agoBecause having a global reserve currency strongly relies on network effects and USD share in international trade is failing steadily? How much of this IP heap is an utter trash like software patents and patents on black rectangles generated just to be added to a patent pool? From my (surface-level) understanding school-level education in the US has much bigger troubles compared to China, but luckily for the US it gets compensated (for now) by sucking brains from all over the world into the well established system of universities. And it's not like China has no experience with playing extremely loosely with IP laws.
- lvl102 4y agoYou sound very anti-American.
- andsoitis 4y agoUSD share of global forex reserves has been declining for two decades, but it is still used more than all other currencies combined. Here is a good article by the IMF that gets into how various central banks are diversifying their reserves into a broader range of currencies. https://www.imf.org/en/Blogs/Articles/2022/06/01/blog-dollar-dominance-and-the-rise-of-nontraditional-reserve-currencies https://www.imf.org/en/Blogs/Articles/2022/06/01/blog-dollar...
- lvl102 4y agoEUR is all but finished. Chinese RMB is also set for significant depreciation as a direct result of international trade/manufacturing “rebalance” away from everything-made-in-China model. Only thing remaining is USD.